Trade Gold Trading

What's The Difference Between Maximum Energies Leverage and Used Leverage?

You should note that there's a difference between maximum leverage ( leverage given by your broker which is the highest leverage you can trade with if you choose to) and used leverage ( leverage depending on the lots you have opened/open trade positions). One is the broker's (Maximum) and other is trader's (Used). To explain this concept we shall use example above:

If your broker has given you 100:1 Maximum leverage, but you only open trading lots of $100,000 then Used leverage is:

100,000 : $10,000 (your money)

10:1 Used Energies Leverage

You have used 10:1 leverage, but your max leverage is still 100:1. This means that even if you are given 100:1 Maximum trading leverage or 200:1 Maximum leverage, you do not have to use all of it. It's best to keep your used leverage to a maximum of 10:1 but you will still select 100:1 maximum leverage option for your account. The extra leverage will give you what we call Free Energies Trading Margin, As long as you've some Free margin on your trading account then your trades will not get closed by your broker because this margin requirement will remain above required level.

When it comes to energies trading one of your energies rules: energies money management guide-lines on your energies plan should be to use below 5:1.

Leverage Example

The example illustrated and explained below, the set leverage ratio is 100:1, the margin which is 1% is $2683.07, therefore the total amount controlled by the trader is: $268,307 - this is because with this leverage the trader has used little of his money & borrowed the rest of the money, with this set at 100:1, trader is using 1 % of their capital, this 1% equals to $2683.07, if 1% equals to $2683.07 then 100% is $268,307

Leverage and Margin Shown in MT4 Software Platform - Used Energies Trading Leverage

Meta Trader 4 Energies Software - What's The Difference Between Maximum Energies Leverage and Used Energies Trading Leverage?

In the above image example, the trader is using $2683.07, total controlled amount is $268,307, but account equity is 16,116.55, therefore used leverage is ( $268,307 divide by 16,116.55 ) = 16.64 : 1

16.64 : 1

In the trading account above even though the max leverage set trade leverage is 100:1, Used leverage is 16.64 : 1